Lawmakers: Deciding where to send the Taxman

State lawmakers will be back at the Capitol on Monday. (Associated Press photo)

In an overall budget that’s about $31 billion, a couple hundred million bucks is chump change.

But when you have to come up with that money by possibly taxing the bottled water your constituents drink, or the candy they eat or by taking a few more pennies from everything they buy, well, then $200 million is quite a bit of money indeed.

State lawmakers will reconvene in Olympia at noon Monday for a special session. The regular, 60-day session ended Thursday with majority Democrats in the House and Senate about $200 million apart in their respective tax plans to help close a $2.8 billion operating budget deficit.

The budget crisis has revealed fissures between moderate and liberal Democrats. The moderates are balking at further attempts to close tax loopholes, fearful that could hurt businesses. Liberals are wary of adding a general sales tax increase to the state’s already regressive tax structure, but also have little stomach for additional program cuts that would fall disproportionately on the poorest Washingtonians.

The Senate’s closing tax plan was $890 million, anchored by a three-tenths-of-a-cent sales tax increase. The smaller House proposal keyed on closing $380 million in loopholes and charging sales tax on nothings like candy, gum and bottled water.

Democrats, most of whom up for re-election, know they’re going to get lambasted by Republicans in November for summoning the Taxman. That’s why during the special session they’ll try to come up with a jobs plan, as well. One idea is to sell bonds for specific construction projects.

Senate Majority Leader Lisa Brown, D-Spokane, thinks lawmakers can finish up in a week. “We’re going to come back on Monday and work every day until we get there,” she said.

A week to raise taxes and pass a jobs bill? While lawmakers will want to minimize the costs of the special session (each day costs taxpayers 18 grand), don’t be surprised if they are still in Olympia next Monday.